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LEGG MASON IF JAPAN EQUITY X

LEGG MASON IF JAPAN EQUITY X - Overview

Overview of LEGG MASON IF JAPAN EQUITY X Buy in ISA Buy in Investment Account

The fund aims to produce a capital return above the TOPIX index over a full market cycle. Tokyo based Hideo Shiozumi has been managing Japanese equity money since 1970 and specialises in smaller and mid capitalisation companies. The portfolio is concentrated and has little resemblance to any benchmark so relative performance can differ substantially. This also means that the portfolio differs greatly from those that UK investors typically get exposure to.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Japan
Structure OEIC
Launched December, 2012
Size £1m
Yield 0.0%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 1.02%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Hideo Shiozumi is an experienced manager of Japanese equities. During his career he has had periods of considerable outperformance. This is due to his investment style which seeks primarily small cap companies that generate most of their revenues domestically. These stocks tend to exhibit significant volatility, and therefore this strategy should be regarded as relatively high risk. Therefore this fund is only appropriate for higher risk investors or as part of a diversified portfolio.

Portfolio

Allocation Proportion(%)
Equity 99
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 1
Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 100
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 20
Mid Caps 70
Small Caps 10
View all performance data for this fund

Investment process

Stock selection arises from extensive research undertaken on potential holdings. This will include meeting company management, customers and competitors. Stocks are held strategically over a long period of time and the portfolio tends to be concentrated with a high weight given to the top ten holdings. On a long term view the fund manager believes that Japan is experiencing cultural and social change with the market moving from being biased to manufacturing to one which is more service and consumer-orientated. The fund therefore aims to identify 'new Japan' companies, which have rapid and consistent earnings growth. These are companies which have grown by a minimum of 20% pa over at least two years and are predicted to grow by at least this level in the future. The fund has no exposure to the well known Japanese manufacturers or banks. Instead the portfolio is focused primarily in service, retail and wholesale stocks that are benefiting from consumers' increasing use of the internet. Another theme in the portfolio is healthcare, which aims to take advantage of the unfavourable demographics in Japan.

Live feed

Bid price(inc) 369.40p
Accum units 370.50p
Fund commentary 30/12/15
Fund data updated on 26/09/17

Asset allocation

Allocation Proportion(%)
Equity 99
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 1

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 100
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 20
Mid Caps 70
Small Caps 10

Top 10 holdings

As at: 30/06/2017
8.8664%Nihon M&A Center Inc
8.5994%Peptidream Inc
6.4608%M3 Inc
5.5046%Start Today Co Ltd
4.8641%Sms Co Ltd
4.5573%Nintendo Co
4.205%Welcia Holdings Co Ltd
4.0387%Outsourcing Inc
3.417%Gmo Payment Gateway Inc
3.2924%Cyberdyne Inc
Source: Trustnet

Sector breakdown

Health Care 28%
Industrials 24%
Information Technology 21%
Consumer Discretionary 14%
Consumer Staples 9%
Real Estate 2%
Financials 2%
Cash & Cash Equivalents 1%

Portfolio details

Typically 30 to 50 companies are held in the portfolio. The top ten will usually account for around 50% of the portfolio.

Constraints

There are no specific stock or sector restrictions.
The portfolio usually has very little commonality with the Index and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
12/13 13/14 14/15 15/16 16/17   3 years 5 years Career 3 years 5 years Career
3.05% 0.77% 1.12% 0.64% 0.56%   0.77% 1.23% 0.69% 86.40% 97.50% 98.50%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Hideo Shiozumi

Manager. Shiozumi has over 40 years’ experience in Japanese equities. He operates in a boutique culture and has three analysts on his staff, one of whom is his daughter. In 1990 he founded Shiozumi Asset Management which has subsequently been appointed as Investment Advisor of the Legg Mason IF Japan Equity Fund. Prior to this Shiozumi ran the Japanese portfolio for George Soros’ Quantum fund from 1983. He started his career with Robert Fleming, where he joined as an analyst in 1970. He was educated in USA and holds a BA in Economics from Guilford College, Greensboro.

Track record

Hideo Shiozumi has 26.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.69%. During the worst period of relative performance (from February 2000 - August 2010) there was a decline of 78% relative to the index. The worst absolute loss has been 79%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 99%.

Periods of worst performance
Absolute -79% (December 2005 - October 2008)
Relative -78% (February 2000 - August 2010)

Other funds managed

  Start Date
LEGG MASON IF JAPAN EQUITY ANov 1996

Sector record since May 1991 (26 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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